A. Z. A. Realty Corp. v. Harrigan's Cafe, Inc.

113 Misc. 141
CourtCity of New York Municipal Court
DecidedSeptember 15, 1920
StatusPublished
Cited by6 cases

This text of 113 Misc. 141 (A. Z. A. Realty Corp. v. Harrigan's Cafe, Inc.) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. Z. A. Realty Corp. v. Harrigan's Cafe, Inc., 113 Misc. 141 (N.Y. Super. Ct. 1920).

Opinion

Genung, J.

This is a summary proceeding brought upon the ground of a holdover. Upon the trial the following facts were conceded: Under date of April 25, 1915, the then owners of the premises 415 Lexington avenue, Manhattan borough, New York city, leased the same to John E. Harrigan (named in the precept as “ under-tenant ”), under a written agreement of lease for a period of fifteen years commencing on the 1st d'ay of May, 1915. The tenant, having [143]*143defaulted in making payment of the amount "of rent reserved by the lease, requested an extension of time within which to pay for the same with the result that, on the 22d day of December, 1915, an additional agreement (hereinafter referred to as the modification agreement) was entered into between the landlords as parties of the first part, John E. Harrigan as'party of the second part and Harrigan’s Cafe, Inc., a domestic corporation, as party of the third part. This modification agreement, after reciting an indebtedness of $1,888.28 owing by John E. Harrigan on account of accrued rent and his request for an extension of time within which to pay the same, made provision to the effect that the amount of this indebtedness, with interest, together with a further sum aggregating $200, representing part of the rent to accrue for the first four months of the year 1917, was to be paid by the tenant in installments of $50 per month, said monthly installments to be added to, and become a part of, the rent due for each month commencing with the month of May, 1918. The modification agreement also conferred upon John E. Harrigan the right to assign the lease to Harrigan’s Cafe, Inc., he, however, to continue to be in all respects liable for the full performance of all of the terms and provisions thereof. By the modification agreement, the landlords, their executors, administrators or assigns, were given the right to terminate the original lease, together "with the modification agreement, by giving, in the manner as therein provided, three months prior notice in writing of the intention to terminate the same, and thereupon the landlord was to pay to the tenant the sum of $15,000, after first crediting against the same any sums due to the landlords for rent, taxes, water rents or otherwise, growing out of the lease.

On or about the 21st day of January, 1920, the [144]*144A. Z. A. Realty Corporation, the petitioner herein, became the owner in fee of the premises described in the aforesaid lease, acquiring all of the rights of the landlords under the lease and modification agreement. On the 7th day of April, 1920, the petitioner served upon Harrigan’s Cafe, Inc., John E. Harrigan individually and Joseph Napoli, an undertenant, in the manner as prescribed by the modification agreement, a notice of its intention to terminate the agreement of lease and the tenancy created thereby three months from the date of the giving of such notice. More than three months elapsed between the giving of the aforementioned notice and the bringing of this proceeding.

Under date of April 28, 1915, John E. Harrigan executed and delivered to one Jacob Ruppert, a domestic corporation, his bond secured by an indenture of mortgage covering the leasehold interest here involved. This mortgage recites an indebtedness of $10,168.53 due to Ruppert from Harrigan, the said principal sum, together with interest thereon at the rate of six per cent, being payable on demand. This mortgage was duly recorded and stands unsatisfied of record.1

On or about the 17th day of September, 1915, Harrigan’s Cafe, Inc., was incorporated as a domestic corporation, John E. Harrigan having been one of the incorporators, as well as a director, thereof.

Under date of March 14,1917, Harrigan’s Cafe, Inc., executed and delivered to one Smith and another a mortgage covering in part the leasehold interest here involved. This mortgage recites an indebtedness on the part of the mortgagor to the mortgagee in the sum of $8,000 and interest from the date thereof, the said principal sum being payable with interest on demand. This mortgage was duly recorded and [145]*145stands unsatisfied of record. There is no assignment of record of the lease from Harrigan to Harrigan’s Cafe, Inc.

On the 19th day of November, 1919, the secretary of state of the state of New York issued his certificate to the effect that Harrigan’s Cafe, Inc., had complied with the provisions of section 221 of the General Corporation Law of the state of New York, the same relating to the voluntary dissolution of corporations. At the time of such dissolution, John E. Harrigan was a director of the corporation.

Under the terms of the original lease, the lessee, in addition to the stipulated monthly rental payments therein provided, "was to pay all taxes in excess of $1,200, which might become a lien on the premises- in any year of the term. ■ The tax levied upon the premises in question for the year 1920 amounts to $1,612, one-half thereof having become due and payable on the 1st day of May, 1920, the remaining one-half becoming due and payable on the 1st day of November, 1920. Under date of April 19, 1920, one Stern, a real estate agent employed by the petitioner for the collection of rents, on his own billhead, rendered a bill to Harrigan’s Cafe, Inc., and John E. Harrigan for $412, this sum representing the amount of taxes in excess of $1,200 levied upon the premises for the year 1920. On the 1st day of May, 1920, the amount of this bill was paid to said Stem, who thereafter remitted the same, together with his rent collections, to the petitioner.

On the 8th day of July, 1920, the petitioner made a tender of $14,069.31, this sum representing the difference between $15,000, the compensation to be paid to the tenant under the terms of the modification agreement, and the amount claimed by the petitioner to be due to it for rents, taxes, water rents or [146]*146otherwise, growing ont of the lease, and offered to pay over the amount so tendered, together with such additional sums, if any, as the tenant was legally entitled to receive, upon the tenant’s compliance with certain conditions hereinafter mentioned. This tender was refused.

Upon the trial oral testimony was adduced relating to the aforesaid tender as well as an additional and separate tender of $206, this sum representing one-half of the amount of taxes paid by the tenant.

The tenants contend that the landlord is not entitled to succeed in this proceeding for the following reasons: (1) that payment by the landlord to the tenant of the compensation provided for by the modification agreement, or a tender of such payment, was a condition precedent to the termination of the leasehold term; (2) that the tender made was ineffectual because of the conditions thereto attached and the insufficiency in amount; and (3) that the rendering of the bill for excess taxes for the year 1920 and the payment thereof constituted a waiver by the landlord of its right to terminate the leasehold term at least during the year 1920.

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Bluebook (online)
113 Misc. 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-z-a-realty-corp-v-harrigans-cafe-inc-nynyccityct-1920.